Construction World April 2017

MARKETPLACE

Steady results amidst a volatile business climate

Attacq Limited recently released its interim results for the six months ended 31 December 2016. Attacq has a total asset value of R27,1 billion at 31 December 2016 and strives to deliver longer term capital growth to investors. Since inception to 31 December 2016 Attacq has achieved a Compound Annual Growth Rate (CAGR) of 27,7% for net asset value per share adjusted for deferred tax (Adjusted NAVPS).

Attacq has a creative approach to real estate investments and developments. Morné Wilken, CEO of Attacq Limited says that the tougher global economy, the strengthening of the South African Rand and international market volatility had an impact on the interim results. He explains that Attacq is a long term property investment. He is confident that the company’s vision to be the premier property company in South Africa is a sound one. The adjusted NAVPS decreased by 1,7% year-on-year from R21,72 to R21,35 mainly due to the strengthening of the South African Rand and international market fluctuations. Attacq is a South African company with a quality diversified portfolio and development pipeline. Attacq has enjoyed healthy income growth from its core portfolio, of which the weighted average lease expiry is 6,5 years. This secures greater sustainability of investment in developments and resultant long term growth. “Attacq’s development portfolio is focused in Waterfall, Gauteng. Development in Waterfall is a strategic priority for Attacq as an infill development that is easily accessible and centrally located between Johannesburg and Pretoria. The concept behind Waterfall is to create a new lifestyle city where people can live, work and play,” explains Wilken.

Waterfall includes the Mall of Africa, the company’s super regional retail development and a catalyst for growth in Waterfall; as well as mixed-use, office and light industrial developments. “Our crown jewel, Mall of Africa, performed above expectation in the eight months of trading to 31 December 2016. The Mall of Africa generated an exceptional monthly average trading density of R2 777 per m² and achieved more than 1,1 million visitors per month since opening on 28 April 2016. Attacq’s quality portfolio includes 58% of retail properties. All Attacq’s regional malls across South Africa are performing well. If the past and the development of other cities are used as comparative case studies, the future of Waterfall as Gauteng’s newest lifestyle, business and light industrial city is bright. Waterfall is rapidly becoming a favoured business destination. “One must note that Waterfall, with Waterfall City as its nucleus, is in the centre of Gauteng as the economic hub of the country. It is the ideal infill development between Johannesburg and Pretoria with excellent access and infrastructure,” he says. Waterfall is now recognised and rapidly gaining favourable business stature, as people see what is happening in Waterfall City, the 1,3 ha central Waterfall Park and the commercial development in the area.

Morné Wilken, CEO of Attacq Limited.

The second wave of development beyond the Mall of Africa and Waterfall park is well underway. “Four more buildings were completed in Waterfall in the last six months; the Allandale Building, Dimension Data, Torre Industries and the Amrod buildings. These buildings increase the total directly held in attributable primary gross leasable area by 70 424 m 2 in Waterfall,” says Wilken. “We look forward to the opening of the PwC Tower and Annex in February 2018. The opening of the PwC Tower will add more than 3 500 mostly high LSM new daily visitors to Waterfall which will bode well for the entire Waterfall,” says Wilken. As the city densifies it will increase trading densities in the various retail properties across Waterfall and also increase week- day trading to be more comparable with the weekend visitor numbers. Waterfall Point, opposite the Waterfall Polo Fields, is a unique offering not current- ly represented elsewhere in the city. Waterfall Point is a contemp- orary sectional title office develop- ment that consists of two super-base- ments which sit below four identical, two-storey buildings of around 2 500m 2 each. More than 27 000 jobs will be created in Waterfall during construction and around 60 000 people will work there during the operational phase. “Attacq, as the leading visionary regional business force, is proud to invest in, develop and grow Waterfall and Waterfall City as a world-class city destination,” states Wilken. 

The Mall of Africa in Waterfall.

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CONSTRUCTION WORLD APRIL 2017